Canary Litecoin ETF has been listed on the Depository Trust & Clearing Corporation (DTCC) website as of February 21, marking a key procedural step toward its potential trading.
The Canary Litecoin ETF, identified by the ticker LTCC, appears in the DTCC’s creation/redemption section but remains pending regulatory approval from the U.S. Securities and Exchange Commission (SEC).
While inclusion on the DTCC’s list simplifies the logistics of trading, it does not equate to SEC approval. The SEC has historically exercised caution regarding crypto ETFs, making the final decision on the fund’s approval uncertain. The commission has up to 90 days from the publication of the proposed rule change in the Federal Register to reach a decision.
The investment firm behind the Canary Litecoin ETF initially filed for approval in October 2024 alongside its proposed XRP ETF. Market sentiment appears optimistic about the fund’s approval prospects, with Polymarket bettors assigning an 85% likelihood following the DTCC listing.
Bloomberg ETF analyst Eric Balchunas is even more bullish, estimating a 90% chance that the SEC will greenlight the fund. If approved, Litecoin would become the third cryptocurrency to underpin a spot ETF in the U.S., following Bitcoin and Ether.
Supporters argue that Litecoin’s classification as a commodity, similar to Bitcoin, strengthens its case for regulatory approval. Among other crypto-based ETF proposals, including those tied to XRP and Solana (SOL), the Litecoin ETF is perceived to have the highest probability of success this year.
Further, approval of Canary’s fund could set a precedent for other Litecoin ETFs, such as those proposed by CoinShares and Grayscale, enhancing their likelihood of receiving regulatory clearance.